Click to return to BOL home page
Banker Store Read A Reg BOL Insiders Career Connect Learning Connect Bankers Information Network

Search BankersOnline
using Google


MAIN CONTENT 

Compliance

Lending

Marketing

Operations

Security

Technology/eBanking







SHOP 


Banker Store


Bankers Info Ntwk


CONNECT 

Career Connect

Learning Connect

Guru Central


INTERACT 

Ask a Guru

Bankers Threads

Contact Us

Give Us Feedback


LEARN MORE 

About Our Sponsors

About Us






Print Friendly! Email This Article! Discuss NOW!


What is bust out?


Question: What is bust out?

Answer:  Bust out is a hybrid credit and fraud problem. Also known as sleeper fraud, it occurs when a consumer applies for and uses credit, often under his or her own identity with the intent of maxing out all available credit and eventually disappearing. These criminals engage in normal transactions and pay consistently like good customers, while planning to ignore the final payment and abandon the account. They may have good credit scores, exhibit satisfactory credit utilization and make regular payments until a short time before the bust out occurs.

A bust out scheme is typically defined by the following behavior:
  • The account in question is delinquent or charged-off
  • The balance is close to or over the limit
  • One or more payments have been returned
  • The customer cannot be located
  • The above conditions exist with more than one account and/or financial institution
Bust out is a growing area of fraud for the financial services industry. For organizations across the globe, bust out fraud is not a new problem. However, despite continuous efforts to fight this crime, the losses incurred continue to increase.

To learn more about bust out fraud and how you can identify the potential for a customer to bust out, click here to register for this one-hour webinar: Optimize your fraud defenses: Innovative approaches to address today's fraud trends.

Experian Boilerplate Experianís Decision Analytics business combines data intelligence, analytics, software and consulting to help clients optimize profitability and improve performance. Its enterprise-wide decisioning capabilities enable clients to manage and mitigate credit risk; prevent, detect and reduce fraud; meet regulatory obligations; and gain operational efficiencies. 1 888 414 1120 or fraud.solutions@experian.com.

Learn more about our current webinar series Optimize your fraud defenses: Innovative approaches to address today's fraud trends.

First published on BankersOnline.com 1/05/09









Privacy Policy    Disclaimer   Recommend This Site !   Contact Us


BankersOnline is a free service made possible by the generous support of our advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all banking professionals. Support our advertisers and sponsors by clicking through to learn more about their products and services.